The UK government has launched a £2.5 billion initiative aimed at transforming the country’s automotive sector and securing its position as a global leader in zero-emission vehicle manufacturing. Dubbed DRIVE35, the ten-year strategy is part of the government’s wider Industrial Strategy and will run until 2035.
With an ambitious vision to boost investment in advanced manufacturing, DRIVE35 includes new and expanded funding competitions focused on supporting gigafactories, automotive start-ups, and supply chain scale-ups. The initiative is expected to play a key role in job creation, innovation, and positioning the UK as a frontrunner in clean transport technologies.
Business and Trade Secretary Jonathan Reynolds described DRIVE35 as “the biggest set of announcements for the sector in the last decade,” emphasising that the programme would provide the certainty needed for long-term investment and sustainable growth in the industry.
“We’re helping British carmakers get to the front of the pack by working hand in hand with investors to build a globally competitive EV supply chain,” Reynolds said. “Economic growth is our number one priority, and this programme will help deliver it – with high-quality jobs, increased exports and a cleaner transport future.”
The government has committed £2 billion in capital support through 2030 and an additional £500 million for automotive research and development through 2035. This comprehensive funding package is aimed at attracting global investors and supporting domestic manufacturers in the electric vehicle (EV) space.
The UK already holds a strong position in EV adoption, with more than 382,000 electric vehicles sold in 2024, making it Europe’s largest EV market and the third-largest globally. Infrastructure is also expanding rapidly, with over 82,000 public charge points installed nationwide.
As part of the announcement, more than £300 million in direct support for key projects was confirmed, including over £100 million in capital funding from the Automotive Transformation Fund, £140 million in public-private R&D investment involving Mercedes and Jaguar Land Rover, and £18 million for connected and automated mobility technologies.
Significant new investments include a £100 million commitment from Astemo Ltd to develop next-generation EV inverters in Bolton, creating over 220 jobs, and £15 million from Dana to expand EV component production in the West Midlands, supporting 100 roles.
Industry leaders welcomed the move, with SMMT Chief Executive Mike Hawes calling DRIVE35 “further evidence of the sector’s importance to economic growth,” while Ian Constance, CEO of the Advanced Propulsion Centre, said it “underlines government’s commitment to securing advanced manufacturing in the UK.”
Applications for the first round of funding open tomorrow, with businesses across the UK encouraged to take part in what the government calls “the biggest industrial opportunity of the century.”
